Final answer:
Farmers in the late 19th century organized into cooperative groups like the Grange and the Farmers Alliance in response to economic hardships. They aimed to achieve better rates and prices, and to exert pressure on political leaders for change. These movements laid the foundation for the Populist Party and later, the AAA.
Step-by-step explanation:
The Response of Farmers to Economic Challenges in the Late 19th Century
In response to the economic challenges of the late 19th century, such as consolidation in agricultural markets, dependency on the railroad system, and other financial struggles, farmers organized into cooperative organizations. One of the pioneering groups in this movement was the Grange, founded in 1867 by Oliver Hudson Kelly.
The Grange aimed to help farmers by creating cooperatives for better shipping rates and prices on agricultural necessities. Another significant organization was the Farmers Alliance, which sought to educate farmers on various economic issues and boasted a membership of nearly 4 million at its peak. However, it faced criticism for excluding tenant farmers and African Americans.
The Grange movement first challenged the railroad sector at a state level but was later impacted by the Wabash Case, which reaffirmed federal control over interstate commerce. As a result, the Grange's influence waned, but it laid the groundwork for the crusade to improve farmers' conditions.
Despite different approaches, the farmers' goal was to confront the issues of overproduction, unfair rates, and corrupt practices that led to increased debt and economic disparity. These early organizations later influenced the creation of the Populist Party, which saw a need for political intervention to address the concerns of farmers and other laborers.
By the 1930s, government involvement materialized through programs like the Agricultural Adjustment Act (AAA), which aimed to reduce crop surplus and thus increase agricultural commodity prices.